Category Taxation in Egypt

Egypt Hikes Petrol Prices

June 18, 2018 Taxation in Egypt

Fuel tax EgyptCAIRO – Taxpayers across Egypt will soon be feeling a greater financial burden, hikes petrol prices and gas prices by as much as 50 percent.

Over the weekend the Oil Minister of Egypt Tarek el-Molla announced that the price of petrol and cooking fuel will be hiked, as part of the government’s austerity measures.

Egypt’s ongoing slashes to subsidies are part of a deal with the International Monetary Fund, which is calling for economic reform as part of a USD 12 billion loan package.

The price of 92-octane gasoline will now rise by 34 percent, while the price of 80-octane will rise by nearly 50 percent.

The less popular 95-octane gasoline will also rise, but only by a comparatively smaller level of 17.5 percent.

The hikes are not restricted to transport fuel only, with the gas often use...

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Egypt Tries to Lure Foreign Investment

April 24, 2017 Taxation in Egypt

Foreign Investment in EgyptCAIRO – Cast-strapped Egypt is offering heavy tax discounts to entice foreign companies to invest in the country.

Egypt is currently considering a new legislative proposal which would see foreign companies operating in selected sectors of Egypt’s economy receive substantial tax rebates.

The potential tax rebates could be as high as 40 percent, and would be offered to foreign companies working in food, education, electricity, pharmaceuticals, and manufacturing.

Further, the tax rebate will be accompanied by new measures to ease and speed up the process of launching a business in the country, which had previously taken as long as three years, and would now take as little as 60 days.

The two new measures are aimed directly at sourcing new foreign investment into Egypt, as the country is...

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Egypt Eyes Sharemarket Tax

March 6, 2017 Taxation in Egypt

Sharemarket tax in EgyptCAIRO – Sharemarket transactions in Egypt are set to become more expensive, as the government comes closer to implementing its long-debated stock stamp tax.

Over the course of this week the Cabinet of Egypt is expected to receive the proposed legislation for a new stamp tax to be applied on stock market transactions.

It is currently expected that the tax would be levied at a rate of 0.125 percent on any transaction on the stock market, rising to a rate of 0.15 percent in its second year of operation, and 0.175 percent in its second year of operations.

Based on the number and size of transactions seen on the stock market presently, the tax could raise as much as EGP 1 billion per year.

It is not expected that the tax will result in a drop in the number of value of transactions, as the stam...

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Egypt Launches Tax Dispute Settlement Process

August 31, 2016 Taxation in Egypt

CAIRO – Egypt hopes to lure back investors into the country by settling the overflowing backlog of tax disputes.

On August 30th the parliament of Egypt approved new legislation aimed at easing the process of settling tax disputes, in an effort to attract foreign investors back into the country.

Currently, there are approximately 6 000 tax disputes awaiting evaluation by the national court system, which are cumulatively estimated to be worth as much as EGP 47 billion.

In addition. approximately another 150 civic disputes are awaiting judgment.

Under the new system court proceedings may be placed on hold for at least three months upon request to tax authorities, at which time the case will be examined and resolved by a committee of tax experts who do not have a connection to the tax author...

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Egyptian Companies Take Steps to Avoid Dividend Tax

January 7, 2016 Taxation in Egypt

CAIRO – Egypt’s new tax on dividends is facing a grim future, as companies take steps to circumvent the measure.

Publicly listed companies in Egypt are increasingly opting to forego issuing dividends, in favour of bonus shares, in an effort to bypass the government’s recent tax on cash dividends.
As of July 2014 all cash dividends made by a publicly listed company in Egypt are subject to a tax of 10 percent.

The tax was intended to broaden the government’s tax base, and raise tax collections, following a period of political turmoil.

However, as over the course of 2015 the cumulative value of the cash dividends issued by the companies dropped by 28 percent in comparison to the level of dividends in the previous year, reaching a level of only EGP 9.83 billion, compared to EGP 13...

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